In my opinion bad internet art is when artist use programs such as Photoshop to create photo compilations or other simple images. An example of this is Joe Hamilton’s work.
This doesn’t reflect all of his work, but it is images like this that I do find qualifies as bad art.
Good internet art would be like this example from Sarolta Bán.
Here we can not even tell what is reality and what is faked. This plays with our senses and leaves the viewer unsure of how the image was achieved.